Finding a Niche in Millenials
What kind of niches can you focus on?–downtown condo’s lakefront,. beach property, or certain neighborhoods–but, you can also target a demographic–first time home buyers, move up people–empty nester or ba ba bum…millenials—we are going to talk about the Gen Y or millenials—this is a very different group from Gen X or the baby boomers—if you want to sell to them—you need to do it on their terms—we are gong to talk about how to do that. Why are we talking about Gen Y? its because their coming of age and they want 2 things Wealth and/or fame in fact–wealth is more important to millenials than even Gen X–the greed is good generation that i grew up in. At least thats according to a pew study. and according to National Association of Realtors (NAR) found Millennials now account for the greatest market share of recent home purchases.
NAR’s Home Buyer and Seller Generational Trends Study for 2014, revealed that Millennials comprised 31 percent of recent purchases, leading all other age groups. Here are the percentages for other generations:
- 30% – Generation X
- 30% – Boomer Generation
NAR chief economist Lawrence Yun explained:
“Given that Millennials are the largest generation in history after the baby boomers, it means there is a potential for strong underlying demand. Moreover, their aspiration and the long-term investment aspect to owning a home remain solid among young people.”
Other findings from the report:
- 87% of recent buyers age 33 and younger said they consider their home purchase a “good financial investment”
- Millennials were most likely to have a simple desire to own a home of their own as their motive for purchasing
- The median age of recent Millennial buyers was 29
- The median income was $73,600.
- 87% purchased an existing home, and they plan to stay in their homes for a median 10 years.
- Younger buyers relied more heavily than older groups on real estate agents to help them navigate the process.
Bottom Line
Millennials are in the market and recognize the importance of using a real estate professional to guide them to the closing table.
So–this is a group that wants to take their time and do things right—part of doing things right is getting wealthy before getting married and having kids—we know they are buying property and that there is pent up demand for this group. The question is—are you selling to this group? Is your platform set up to handle this group? Do you know where to go out and find this group? Chances are probably not—-Most likely–this group is being underserved.
If you are going to market to this group there are a few questions that we need to ask.
- How much more time do Millennials spend online and on mobile than their older counterparts?
- How many Millennials own a smartphone? Do they prefer Android or iPhones?
- Do Millennials still use Facebook? Which other social networks do they engage with?
- How do Millennials prefer to watch TV compared to other age segments?
- Why should marketers focus on digital platforms for advertising to Millennials? Video and youtube channel
A few things to keep in mind when you market to this group.
1. Dont insult their intelligence. This is the first group in the history of mankind that has had the worlds information at their fingertips. I remember as a kid looking up definitions in the dictionary. I researched new things in an encyclopedia. Millenials–have learned from youtube and google. This is the most well informed group on the planet. Before making any decision they have researched it, looked for reviews online and have asked friends.
2. Dont try to disquise your offer. This is a group that hates to be sold too and can easily sniff out promotions. Try going on Reddit and posting an offer—-those guys will eat your lunch and then cyber stalk you for posting there. If you are going to market to Gen Y make sure you show them how your service as an agent will improve their lives.
3. Make it easy for them to interact or transact with you online. These folks are used to ebay, craigslist and amazon prime. If you have been lucky enough to capture some of their short attention span make it easy for them to click and get what they want.
4. Quality Service Matters to them. Keep in mind their access to technology and how easily they can find your competitors online, the service and quality you provide is essential. They notice companies that take the time to provide great, Millennial-friendly services; they will reward them by recommending them to our friends. Otherwise, expect them to spread their bad experiences instead — you must fear the bad Millennial review. Word-of-mouth marketing is very much alive, bigger than ever, and it’s all online. Whether your business is ready to deliver, Millennials are demanding better service and higher quality.
Tailoring your efforts with these five points in mind may save your brand from the scar of a bad reputation and help you market to this increasingly lucrative generation.
OK–if youve made it this far you hopefully can see the value of reaching out to this group. Youve asked yourself some leading questions on where to find them and you have an idea of how to communicate with them.
What should your platform look like? Facebook—are they their? Well—yes and no–Facebook these days is mostly for mom and grandma but, with a billion people on the platform there is no way you can dismiss it. What should your FAcebook presence look like? You should have both a company page and a personal page. Your interaction should be 80% personal and 20% business. Think of Facebook like a big cocktail party. You want to mingle and share what you are doing but, you will be a complete bore if all you do is talk about work–hey I just listed a 3/2 for 300K. Want to go look at it? That doesnt work. Your Facebook company page should clearly show what you do and in the about box you should absolutely have a clickable link. For context—-I want you to remember this Facebook is for people that you know and Twitter is for people you want to know. Let it sink in.
Next up Twitter. You are not going to sell a house on Twitter but, with time you can gain a following and this is the place where Millenials will vet you. They may not be following you but, as you may know—80% of people will hire the first agent they meet. Once they meet you they will most certainly go thru your feed and get a sense of who you are–who you follow and who follows you. They want to see if you are an influencer—they want to see if you share common goals and outlook. Be careful of what you tweet and always make sure that it supports your overall brand. Dont have a twitter handle? Go get one today–its free and widespread channel to spread your brand and message. Also go look at Klout and see what your Klout with a K score is.
We cant forget Pinterest and instagram—millenials are fleeing Facebook for instagram. Thats where the new juice is and both of those platforms are much more difficult to gain traction. They are both heavily skewed toward mobile and visual. I would talk about how to build your brand or following on these platforms as a real estate agent but honestly—I dont have a good grasp on it—so I will save this for later
